I'm loving these stories as well. I'll have to look up in my kid's baby books the funny things they have said.
One I remember was my kids were playing with a friend in another room- they were 5 and 3 at the time. My 5 year old says "Let's play beauty shop. I'll be the beauty- you be the shop!"
My sister had taken her my neice to the mall. She must have been 7 or so, and they went to a store called Gaffers. So while they are walking through the store, neice says "What's the name of this store?"
sister "Gaffers"
Neice: "Oh this must be where all the gay people shop!"
My daughter used to call ketchup- checkup.
My other daughter used to think the word "damn" meant dark. I make a teryiaki chicken that comes out dark, and one day she said "Are we having damn chicken again?" (she was around 3 at the time) I thought it was from her hearing my husband say the same thing. But one night we were driving in the car and she said "Look at all of those damn clouds in the damn sky!" We finally asked what she meant, and realized that she thought the word for dark was damn. Til this day we still call teryiaki chicken *damn chicken* lol

When my friends daughter was little instead of "No way Jose." she'd say "No hosey way." It was the cutest thing I'd ever heard.
When I was potty training my twins they'd come and tell me, "Mom my waters coming."
When the twins were little my brother came to stay with us for awhile. My husband has a friend Lonnie who looks a lot like my brother. The twins wouldn't say Uncle Chris instead they were calling him something like Nonnie. It became clear the day Lonnie came to visit. The kids ran to the door yelling Lonnies here Lonnies here. When Lonnie got in the door both twins stopped on cue and stared at him then turned slowly to look at Chris. I started cracking up right then. The look on both their faces was priceless. You could just see the wheels turning and I know they were thinking, "Wait a minute if this is Lonnie just who are you?"

Ok this one made me spit out my coffee today. My 8yr old son came into the kitchen before school this morning and asked about monsters.' DADDY, I'm doing a project on monsters, can you help me name some monsters, there's dracula, frankenstein, the mummy, wolfman." I said "What about headless horseman, king kong, godzilla". So he's sitting thee thinking and then he says with the straightest face ," can I put Michael Jackson, cause he's scary too".

Ok this one made me spit out my coffee today. My 8yr old son came into the kitchen before school this morning and asked about monsters.' DADDY, I'm doing a project on monsters, can you help me name some monsters, there's dracula, frankenstein, the mummy, wolfman." I said "What about headless horseman, king kong, godzilla". So he's sitting thee thinking and then he says with the straightest face ," can I put Michael Jackson, cause he's scary too".

Yep, MJ is pretty scary! One night on tv they had a picture of Michael on the TV- it must have been during his trial, so they picture was up in the corner. My 7 year old walks by, looks at Michaels pic and casually says "Man, that woman looks scary!" and kept on walking. Were were cracking up (and didnt' bother to correct her- she was only 7 after all

Yep, MJ is pretty scary! One night on tv they had a picture of Michael on the TV- it must have been during his trial, so they picture was up in the corner. My 7 year old walks by, looks at Michaels pic and casually says "Man, that woman looks scary!" and kept on walking. Were were cracking up (and didnt' bother to correct her- she was only 7 after all

My guy (almost 6) said to me last week "Mum, you know how some kids say there's no Santa?" I was quite suprised he'd heard this blasphemy at his tender age, and I replied "uh-huh". "Well, they haven't thought about it have they? Cause if there's no Santa, who brings the presents?" Just gave me this "Duh !" face and walked off shaking his head at this silly other kids who don't have his powers of logic.

My in-laws were in town this week and wanted to go to Smokey Bones BBQ for dinner. I told them that was fine with me.
My 4-yr-old and I went into the bathroom to get cleaned up to leave for the restaurant, and his bottom lip was quivering. I asked what was wrong, and he bravely replies while battling back tears, "I don't want to go to that place for dinner!" I explained that is was his grandparents choice, and they were paying for it, so we would go wherever they wanted. He bursts into tears and wails, "But I don't want to eat any body parts!!!" My MIL was standing in the hallway and asked what was he talking about?
To which my son replied, while bawling, "That place is called Smokey BONES and they'll make you eat body parts". I tried explaining to him it wasn't quite like that.

Imagine his distress when we got there and he wanted the chicken tenders- they are called "chicken FINGERS' there!!